Navellier Revs up Nissan

10/10/2003 12:00 am EST

Focus:

Louis Navellier

Editor, Blue Chip Growth and Emerging Growth

"The stock market is shaping up to have a very strong finish to this year," says Louis Navellier, whose Blue Chip Growth Letter buy list returned over 49% from 1998 to mid-2003--five times better than the S&P 500. "Record corporate profits will be announced between mid-October and mid-November. J ump on board and enjoy the ride." Here's his latest buy.

"One stock where there’s no doubt of its outstanding sales is Nissan Motor (NSANY NASDAQ). Nissan’s August sales rose 14%, which is incredibly strong. Specifically, Nissan-badged vehicles rose over 8% while Infiniti sales jumped 59% from last year because of the introduction of the FX45 sport utility vehicle and the G35 coupe. The Infiniti division of Nissan has higher operating margins, so investors can expect that the company’s operating margins will continue to expand and earnings will grow faster than sales. The introduction of successful new vehicles is the key to continued strong sales growth.

"Nissan’s Titan pickup truck and a new SUV based on the Titan chassis are anticipated to boost sales dramatically over the next couple of years. Trucks typically have the highest operating margins of any vehicles, so I think Nissan’s operating margins will continue to expand and help the company achieve record profits for the next several quarters. Although Nissan’s stock is breaking into new highs, I believe that during the next couple of years, Nissan’s stock could surge an additional 100% or more. As a result, I strongly recommend that all investors hold Nissan Motor in their portfolios."

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